Refer to E9-9. In information chapter 9 exercise 9 Equipment (estimated residual value, $4,000) ........................ $16,000 Accumulated

Question:

Refer to E9-9.

In information chapter 9 exercise 9

Equipment (estimated residual value, $4,000) ........................ $16,000

Accumulated Depreciation (straight-line, one year) ..................... 2,000

Required:

If TTC's management estimated that the equipment had future cash flows and a fair value of only $6,800 at December 31, 2013, how would this affect TTC's balance sheet and income statement? Explain.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...